An Indian startup planning to launch a crypto exchange has filed a complaint against the Reserve Bank of India's (RBI) decision to bar banks from engaging with crypto services.
Kali Digital Ecosystems filed a writ petition with the High Court of Delhi on Tuesday against the RBI, the Ministry of Finance and the Goods and Services Tax Council (GST Council) seeking "an appropriate writ, order or direction quashing the circular" which it describes as "arbitrary and unconstitutional."
The company initially planned to launch its crypto exchange, CoinRecoil, in August 2018, and said in the petition that it has "undertaken substantial investment in this regard." However, the company now says it will be unable to operate due to the restrictions on banking services imposed by the RBI earlier this month, as previously reported.
The petition reads:
"On account of the Impugned Circular, the Petitioner will not be able to avail banking services to operate the cryptocurrency exchange 'CoinRecoil.' Such banking services are imperative for the business of the Petitioner. Consequently, the business of the Petitioner is stillborn on account of the Impugned Circular."